Apple: What's The New Price Target? [View article]
The margins in the smartphone industry are changing pretty quickly. 1) The Gross Margin decreased from 42.8% in the previous quarter to 40% in the quarter ended September. The margins for iPhone 4s were just shy of 58% and the numbers for the current quarter reflect that margins for iPhone 5 could be as low as 50%. 2) We believe the margins for the iPad series would be below 30% in the coming quarters i.e. 28%-30%. These margins had been in the range of 30%-35% previously.
For Nokia and Rimm we are using estimates of 2013/14 assuming sales would rebound by then
Apple: What's The New Price Target? [View article]
Can you please explain the positives, thanks ps price targets and recommendations have been changed because of the changing dynamics of the industry as well as product launches.
Why Apple Will Miss Earnings And Trade Below $600 [View article]
here is the reply: You are correct on Verizon and AT&T sales. Our sales figures are conservative based on our assumption that the US market responds more to initial launches. Moreover one of the reasons that higher sales are reported for iPhone 4 and 4s in America are understandable because carriers here lowers prices significantly ahead of such major launches and you wont expect a similar strategy all around the world. Still there is an approximately 3.5 million upside to our figures (in a bullish scenario) which should bring total to 25 million for the quarter and move up 2012 PT to $525. Sell side is expecting a lot from China in terms of growth but until the China Mobile deal comes through its just speculation. Considering China Mobile already has approx 70% of their market, will they be as willing as VZ or T to give up margins? We don't think so. Even if such a deal comes through do not expect subsidies similar to VZ and T. So we think 50%+ growth from China as the sell side is estimating, is unrealistic.
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Hi Bill, You are correct on Verizon and AT&T sales. Our sales figures are conservative based on our assumption that the US market responds more to initial launches. Moreover one of the reasons that higher sales are reported for iPhone 4 and 4s in America are understandable because carriers here lowers prices significantly ahead of such major launches and you wont expect a similar strategy all around the world. Still there is an approximately 3.5 million upside to our figures (in a bullish scenario) which should bring total to 25 million for the quarter and move up 2012 PT to $525. Sell side is expecting a lot from China in terms of growth but until the China Mobile deal comes through its just speculation. Considering China Mobile already has approx 70% of their market, will they be as willing as VZ or T to give up margins? We don't think so. Even if such a deal comes through do not expect subsidies similar to VZ and T. So we think 50%+ growth from China as the sell side is estimating, is unrealistic.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Huge cash reserves is a norm in the technology sector. Apple has approximately 20% of its market cap as cash now compare that with the 'so called' failed companies RIMM and Nokia. Rimm has 2.3 billion in cash on a market cap of 4.25 billion that makes 54% of market cap. Nokia has a net cash of 5.8 billion which is 61% of its 9.5 billion market cap.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Large cash reserves is a norm in the technology sector. Apple has approximately 20% of its market cap as cash now compare that with the 'so called' failed companies RIMM and Nokia. Rimm has 2.3 billion in cash on a market cap of 4.25 billion that makes 54% of market cap. Nokia has a net cash of 5.8 billion which is 61% of its 9.5 billion market cap.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Apple has approximately 20% of its market cap as cash; now compare that with the 'so called' failed companies RIMM and Nokia. Rimm has $2.3 billion in cash on a market cap of $4.25 billion that makes 54% of market cap. Nokia has a net cash of $5.8 billion which is 61% of its 9.5 billion market cap.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Can everyone please relax about Apple's Cash. Please. Here is our one comment that everyone should read before reading other comments:
Most comments are focused around the high value of cash that is hoarded by Apple. On the contrary large cash reserves is a norm in the technology sector. Apple has approximately 20% of its market cap as cash; now compare that with the 'so called' failed companies RIMM and Nokia. Rimm has $2.3 billion in cash on a market cap of $4.25 billion that makes 54% of market cap. Nokia has a net cash of $5.8 billion which is 61% of its 9.5 billion market cap.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Most of the people here are long AAPL, so its pretty normal to see such a response. No one wants to believe that AAPL should get industry valuations in a post Steve Jobs world. Well, i-phone 5 launch should be enough to support our thesis.
Apple: What's The New Price Target? [View article]
Apple: What's The New Price Target? [View article]
1) The Gross Margin decreased from 42.8% in the previous quarter to 40% in the quarter ended September. The margins for iPhone 4s were just shy of 58% and the numbers for the current quarter reflect that margins for iPhone 5 could be as low as 50%.
2) We believe the margins for the iPad series would be below 30% in the coming quarters i.e. 28%-30%. These margins had been in the range of 30%-35% previously.
For Nokia and Rimm we are using estimates of 2013/14 assuming sales would rebound by then
Apple: What's The New Price Target? [View article]
ps price targets and recommendations have been changed because of the changing dynamics of the industry as well as product launches.
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Why Apple Will Miss Earnings And Trade Below $600 [View article]
You are correct on Verizon and AT&T sales. Our sales figures are conservative based on our assumption that the US market responds more to initial launches. Moreover one of the reasons that higher sales are reported for iPhone 4 and 4s in America are understandable because carriers here lowers prices significantly ahead of such major launches and you wont expect a similar strategy all around the world. Still there is an approximately 3.5 million upside to our figures (in a bullish scenario) which should bring total to 25 million for the quarter and move up 2012 PT to $525. Sell side is expecting a lot from China in terms of growth but until the China Mobile deal comes through its just speculation. Considering China Mobile already has approx 70% of their market, will they be as willing as VZ or T to give up margins? We don't think so. Even if such a deal comes through do not expect subsidies similar to VZ and T. So we think 50%+ growth from China as the sell side is estimating, is unrealistic.
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Why Apple Will Miss Earnings And Trade Below $600 [View article]
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]
Most comments are focused around the high value of cash that is hoarded by Apple. On the contrary large cash reserves is a norm in the technology sector. Apple has approximately 20% of its market cap as cash; now compare that with the 'so called' failed companies RIMM and Nokia. Rimm has $2.3 billion in cash on a market cap of $4.25 billion that makes 54% of market cap. Nokia has a net cash of $5.8 billion which is 61% of its 9.5 billion market cap.
Apple Is Trading At 60-75% Premium To Its Sum Of Parts Valuation [View article]